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Leeds’ Central Square changes hands in largest deal since 2019

News

Evelina Grecenko

08 October 2024

Offices

Leeds, Yorkshire & Humber

Ashtrom Properties UK has acquired Central Square in the heart of Leeds’ financial district for £78m.

The transaction represents the largest workspace investment deal in the city for more than five years.

According to Radius, M&G Real Estate funded the £96m scheme in 2014. It was delivered in partnership with Marrico & Roydhouse Properties.

The building comprises 217,249 sq ft of grade-A office space across 11 upper floors and 13,126 sq ft of retail, restaurant and ground-floor leisure facilities. It also features a Winter Garden and Sky Garden with break-out and entertainment space for tenants and 128 basement parking spaces.

The building, located off Wellington Street and Whitehall Road, is certified as BREEAM Outstanding and rated EPC A.

Current tenants include Marks & Spencer, PwC, RSM UK Management, Freeths, GXO Logistics, Sky, Sanderson Weatherall and BDO Services.

Guy Lewinsohn, chief executive of Ashtrom, said: “The acquisition of this building in the heart of Leeds marks a step in our ongoing commitment to invest in the future of the UK’s regional city centres, which we believe are poised for strong growth.”

Will Kennon, executive director at CBRE, which advised Ashtrom alongside Knight Frank, said: “Leeds is experiencing growth across all metrics, and the office market is facing an acute shortage of prime office space which we believe will lead to continued strong rental growth over the next cycle. With the market facing continued development viability challenges, we consider this acquisition will deliver strong risk adjusted returns over both short and long term.”

Henrie Westlake, head of the North at Knight Frank, added: “The acquisition of Central Square by Ashtrom aligns with its strategic decision to invest into the UK office market. As a long-term holder of assets, the strategy is driven primarily by the strong underlying market fundamentals that will drive rental growth for prime assets. Notwithstanding this, there is no question that a normalised market will see significant yield compression that will further validate this approach. This will almost certainly be viewed as the bellwether deal of this cycle.”

CBRE and Knight Frank acted for Ashtrom. Savills represented the vendor.

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Ashtrom Properties, M&G, Roydhouse Properties

Ashtrom Properties UK has acquired Central Square in the heart of Leeds’ financial district for £78m. The transaction represents the largest workspace investment deal in the city for more than five years. According to Radius, M&G Real Estate funded the £96m scheme in 2014. It was delivered in partnership with Marrico & Roydhouse Properties. The building comprises 217,249 sq ft of grade-A office space across 11 upper floors and 13,126 sq ft of retail, restaurant and ground-floor leisure facilities. It also features a Winter Garden and Sky Garden with break-out and entertainment space for tenants and 128 basement parking spaces. The building, located off Wellington Street and Whitehall Road, is certified as BREEAM Outstanding and rated EPC A. Current tenants include Marks & Spencer, PwC, RSM UK Management, Freeths, GXO Logistics, Sky, Sanderson Weatherall and BDO Services.Guy Lewinsohn, chief executive of Ashtrom, said: “The acquisition of this building in the heart of Leeds marks a step in our ongoing commitment to invest in the future of the UK’s regional city centres, which we believe are poised for strong growth.” Will Kennon, executive director at CBRE, which advised Ashtrom alongside Knight Frank, said: “Leeds is experiencing growth across all metrics, and the office market is facing an acute shortage of prime office space which we believe will lead to continued strong rental growth over the next cycle. With the market facing continued development viability challenges, we consider this acquisition will deliver strong risk adjusted returns over both short and long term.” Henrie Westlake, head of the North at Knight Frank, added: “The acquisition of Central Square by Ashtrom aligns with its strategic decision to invest into the UK office market. As a long-term holder of assets, the strategy is driven primarily by the strong underlying market fundamentals that will drive rental growth for prime assets. Notwithstanding this, there is no question that a normalised market will see significant yield compression that will further validate this approach. This will almost certainly be viewed as the bellwether deal of this cycle.” CBRE and Knight Frank acted for Ashtrom. Savills represented the vendor.